Rosalind Evans
Skylar Olsen, Chief Economist at Zillow, participated in ‘Closing Bell Overtime’ to talk about the current condition of the housing market, potential risks in real estate, and the impact of soaring rent prices on consumers.
During the discussion, Olsen offered her expert opinion on various facets of the real estate market. A key takeaway was her projection that home prices could increase to 5% this year. Such a surge could have significant implications for home buyers and sellers soon.
Olsen also delved into the inherent risks associated with the real estate market. While she acknowledged the potential for high returns, she also cautioned that fluctuations in market conditions could pose serious challenges. For instance, a sudden downturn in the economy could lead to a drop in housing prices and negatively impact those with investments in real estate.
The conversation also touched on the subject of high rental prices. With the cost of renting homes hitting record highs in many parts of the country, Olsen expressed her concerns about the strain this puts on consumers. In particular, she noted the challenge for those struggling to balance the costs of daily living with a desire to save for their own home.
As part of Zillow, a leading real estate and rental marketplace, Olsen’s insights provided a valuable perspective on the state of the housing market. The conversation served as an important reminder of the need for careful consideration and strategic planning when entering the real estate market, given its potential volatility and rising prices.
To better navigate this challenging housing market, Olsen suggested several strategies for both prospective buyers and renters. She emphasized the importance of careful financial planning, urging individuals to factor in all costs, including unexpected ones when determining what they can afford in terms of housing. This includes being mindful of property taxes, insurance, and maintenance costs, which can add significant monthly expenses.
Olsen also suggested that renters feeling the pressure of high prices might want to explore potential cost-saving alternatives. This might include looking at shared living arrangements or renting properties in less expensive neighbourhoods or cities.
In terms of investment in real estate, Olsen advised a cautious approach, recommending thorough research and diversification of investments to mitigate risk. This can include investing in real estate investment trusts (REITs) or diversifying with other assets like stocks and bonds to balance out potential losses in any sector.
As housing prices continue to rise, Olsen encouraged potential buyers to be patient and not rush into purchasing. The market can fluctuate, and sometimes waiting for the right opportunity can yield significant benefits.
Olsen’s discussion on ‘Closing Bell Overtime’ shed valuable light on the complexities of the current housing market. While acknowledging the challenges of high prices and market volatility, she highlighted potential strategies for navigating these issues. Her insights are instrumental for those planning to step into the real estate arena or struggling with high rent burdens.
